FOR IMMEDIATE RELEASE

May 16, 2023

Round Two of Insure Louisiana Incentive Program Application Period Canceled in Anticipation of Additional Funding

The second 30-day application period for insurance companies to apply for Insure Louisiana Incentive Program funding has been canceled. It was originally opened May 1.

The total amount of grant funds available during the second application period was $3.15 million. The LDI anticipates approximately $10 million in additional funding will be appropriated to the program during the legislative session and will restart the second application period once that funding is appropriated.

The Incentive Program offers matching grants to incentivize new and existing insurance companies to write residential and commercial policies in coastal areas, including writing policies out of Citizens.

The participating insurance companies must meet solvency standards that are in line with standards required by the federally backed mortgage companies. The insurers will also be subject to enhanced solvency monitoring including, but not limited to, newly increased capital and surplus requirements, monthly reporting and in-depth reinsurance program reviews.

The original Insure Louisiana Incentive Program was vital to the successful recovery of our property insurance market after hurricanes Katrina and Rita in 2005. The program was recreated during the 2022 Legislative Session, and the legislature overwhelmingly passed $45 million in funding for the program during a special session earlier this year. Nearly $42 million of the available $45 million was awarded to eight insurers following the first round of applications.

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting www.ldi.la.gov.